Landlord Overcharged Tenant for Parking Space

Rent-stabilized tenant complained of rent overcharge in connection with his parking space. The DRA ruled for tenant, finding that landlord had collected an overcharge since the base date rent for garage space, and ordered landlord to refund $6,000, including interest. Landlord appealed and lost. Landlord claimed that the parking space wasn't an ancillary service because it wasn't building-wide and wasn't provided in connection with the leasing of tenant's apartment. Tenant obtained the parking space nine years after he moved in and there were substantially fewer parking spaces than apartments in the building. The DHCR disagreed. Rent Stabilization Code Section 2520(r)(3) defines an ancillary service as that space and those required services not contained within the apartment that the landlord was providing on the applicable base date. Courts also have held that parking spaces available to tenants in a building is a service provided in connection with the leasing of their apartments. It didn't matter that there were fewer parking spaces than apartments in the building.

M&M Parkside Towers, LLC: DHCR Adm. Rev. Docket No. ES210054RO (3/7/17) [3-pg. doc.]